Derivative Financial Instruments

9 Months Ended

Sep. 30, 2019

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 8.    DERIVATIVE FINANCIAL INSTRUMENTS

We are impacted by changes in foreign currency exchange rates. We may manage these risks through the use of derivative financial instruments, primarily forward contracts with banks for one-month periods. These forward contracts manage the exchange rate risk associated with intercompany debt denominated in nonfunctional currencies. These derivative instruments are not designated as hedges; however, they do offset the fluctuations of our intercompany debt due to foreign exchange rate changes. We did not enter into any new foreign currency exchange forward contracts during the three and nine months ended September 30, 2019 and 2018. We did not have any currency exchange rate contracts outstanding as of September 30, 2019 and 2018.

During the three and nine months ended September 30, 2019 and 2018 the gains and losses recorded related to the foreign currency exchange contracts are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Foreign currency loss from foreign currency exchange contracts	$	—	$	—	$	—	$	(750)

These gains and losses were offset by corresponding gains and losses on the revaluation of the underlying intercompany debt and both are included as a component of Other income (expense), net, in our Unaudited Condensed Consolidated Statements of Operations.